SEBI decides to introduce a framework for ‘Accredited Investors’ in the Indian securities market.
The Eligibility criteria for Accredited Investors who may be Individuals, HUFs, Family Trusts, Sole Proprietorships, Partnership Firms, Trusts and Body Corporates based on financial parameters and information as may be specified by SEBI.
SEBI introduces cross-margin facility on commodity futures.
To be eligible for the cross margin benefit, contracts belonging to Index futures and underlying constituents or its variants shall belong to the same expiry month or to the nearest expiry month and should be from amongst the first three expiring contracts only.
IFSCA to introduce Negotiated Large Trade facility on Stock Exchanges.
The NLT trades on behalf of clients shall not be executed against the trading member’s own account. The Trading Members shall execute NLT trades on behalf of their clients only after obtaining explicit written consent from their respective clients.
SEBI Issues Prudential norms for liquidity risk management for open-ended debt schemes.
All regulatory limit calculations other than Asset Allocation Limits (e.g. for Macaulay Duration, Risk-o-meter, investment restrictions pertaining to issuer, sector and group), the base to be considered is 100% of Net Assets.
Alignment of interest of Key Employees of AMC with the Unitholders of the Mutual Fund Schemes shall be applicable from 1st October 2021.
A minimum of 20% of the salary/ perks/ bonus/ non-cash compensation(gross annual CTC) net of income tax and any statutory contributions (i.e. PF and NPS) of the Key Employees of the AMCs shall be paid in the form of units of Mutual Fund schemes in which they have a role/ oversight.
SEBI amends (Alternative Investment Funds) Regulations, 2012.
The AIFs may invest in an Investee Company up to a specified limit, directly or through investment in the units of other AIFs without labelling themselves as a Fund of AIFs.
The Securities Contracts (Regulation) (Amendment) Rules, 2021.
As per the amendment under rule 19(2) an applicant company shall satisfy the stock exchange that its articles of association provide for the following among others, that the company shall use a common form of transfer and the fully paid shares will be free from all lien etc.
NSE guidelines in case of switchover of trading system to Disaster Recovery (DR) Site
In case of contingency observed at the primary site, the Exchange may have to shift its operation from primary site to DR site. Members may note that no changes are required to be made at their end for connecting to Primary/DR site for Order Matching Platform, Negotiated Trade Reporting Platform & Tri-Party Repo Market Platform.
SEBI issues Framework for administration and supervision of Investment advisers.
All SEBI registered IAs shall submit periodic reports to IAASB in such manner as may be specified by IAASB.
SEBI modifies norms on investment and disclosure by Mutual Funds in Derivatives.
Based on the modified norms, the Mutual Funds may enter into plain vanilla Interest Rate Swaps (IRS) for hedging purposes. The value of the notional principal in such cases must not exceed the value of respective existing assets being hedged by the scheme.
